Saudi Company for HardwareSAU:4008 -1.23%71 Gross Margin % is 15.53% as of Mar. 2026, which is 6% below its 10-year median of 16.57. GuruFocus rates SAU:4008 with a GF Score™ of 71/100 and a GF Value™ of ﷼33.77 (Significantly Undervalued). The stock has 9 warning signs investors should review. Among 1,109 Retail - Cyclical companies, Saudi Company for Hardware ranks worse than 84.04% on this metric.
Saudi Company for Hardware (SAU:4008) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Saudi Company for Hardware had a gross margin of 15.53% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Saudi Company for Hardware Gross Margin % Related Terms
Saudi Company for Hardware Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
SAU:4008 vs CASY, WSM, DKS: Gross Margin % Comparison
For the Specialty Retail subindustry, Saudi Company for Hardware's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Saudi Company for Hardware Gross Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Saudi Company for Hardware's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Saudi Company for Hardware's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Saudi Company for Hardware (SAU:4008) has a Gross Margin % of 15.53% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Saudi Company for Hardware and its competitors. This is near median its historical median of 16.57. Over the past decade, Saudi Company for Hardware's Gross Margin % has ranged from 5.95 to 20.00. According to the industry distribution chart, Saudi Company for Hardware ranks #932 out of 1109 companies in the Retail - Cyclical industry, placing it in the top 84%.
Is Saudi Company for Hardware's Gross Margin % too high?
Saudi Company for Hardware's current Gross Margin % of 15.53% is near median its 10-year median of 16.57. Over the past 10 years, this metric has ranged from a low of 5.95 to a high of 20.00. The Retail - Cyclical industry median Gross Margin % is 36.26. Saudi Company for Hardware's value of 15.53% is 57.2% below this industry median. Based on the distribution chart, Saudi Company for Hardware ranks #932 out of 1109 companies in the Retail - Cyclical industry, which is in the bottom quartile relative to peers. Overall, Saudi Company for Hardware has a GF Score™ of 71/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Saudi Company for Hardware's Gross Margin % compare to CASY and WSM?
According to the Retail - Cyclical industry distribution chart, Saudi Company for Hardware ranks #932 out of 1109 companies for Gross Margin %. This places Saudi Company for Hardware in the lower half of its industry. The industry median Gross Margin % is 36.26. Saudi Company for Hardware's value of 15.53% is 57.2% below this benchmark. Historically, Saudi Company for Hardware's own Gross Margin % has ranged from 5.95 to 20.00 over the past decade. While the company's 10-year median is 16.57 vs. the industry median of 36.26, Saudi Company for Hardware has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Retail - Cyclical company?
The median Gross Margin % among Retail - Cyclical companies is 36.26, based on 1,109 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Saudi Company for Hardware's current Gross Margin % of 15.53% is 57.2% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Saudi Company for Hardware and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Saudi Company for Hardware's current Gross Margin % is 15.53%, which is near median its own 10-year median of 16.57. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Saudi Company for Hardware stock overvalued right now?
Based on GuruFocus' analysis, Saudi Company for Hardware (SAU:4008) is currently considered Significantly Undervalued. The stock's GF Value™ is ﷼33.77, compared to a current price of ﷼23.34 — trading 30.9% below its estimated fair value. The current Gross Margin % is 15.53%, which is near median its 10-year median of 16.57 and 57.2% below the Retail - Cyclical industry median of 36.26. Saudi Company for Hardware's overall GF Score™ is 71/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Saudi Company for Hardware (SAU:4008), the current Gross Margin % is 15.53% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Saudi Company for Hardware (SAU:4008) Overvalued in 2026?
Based on GuruFocus' analysis, Saudi Company for Hardware stock appears to be undervalued.
The current stock price of ﷼23.34 is trading 30.9% below its estimated GF Value™ of ﷼33.77.
GuruFocus considers Saudi Company for Hardware to be Significantly Undervalued.
Key valuation signals for SAU:4008:
Gross Margin %: 15.53% (near median its 10-year median of 16.57)
GF Value™: ﷼33.77 vs. price of ﷼23.34 (30.9% below fair value)
Industry Position: 57.2% below the Retail - Cyclical median (#932 of 1109)
No single metric tells the full story. See the SAU:4008 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Saudi Company for Hardware is principally engaged in the retailing and wholesaling of household and office supplies and appliances, construction tools and equipment, and electrical tools and hardware. Along with subsidiaries, the company operates in the following segments: Sales and Services, and Logistic Services. A majority of its revenue is generated from the Sales and Services segment, which includes the sale of goods made to retail and wholesale customers. The service department represents the services department's income from the delivery, installation, and maintenance of items sold. The Logistics segment provides a comprehensive logistics offering to its clients, including freight forwarding, transportation, and contract logistics.
71GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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